Despite surging home prices and increasing lumber prices, the red-hot housing industry shows no signs of slowing down due to robust demand. Housing prices rose at the fastest pace in 45 years in January. Regarding this, CoreLogic chief economist Frank Nothaft said, “In December and January, for-sale inventory continued to be the lowest we have seen in a generation … Buyers have continued to bid prices up for the limited supply on the market.”
This trend will likely continue in the near term, as mortgage rates have been plummeting sharply over the past two weeks due to the escalating geopolitical tensions between Russia and Ukraine. Moreover, the Biden administration passed the landmark $1.2 trillion infrastructure bill yesterday after being stalled in the Senate over the last two months. This should fuel the homebuilding industry’s growth further.
